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As expected given the current situation, vehicle sales in Spain have plummeted. Registrations of passenger cars and SUVs have fallen by 69.3%, despite the state of emergency being declared on March 14th.

Registrations of passenger cars and SUVs in Spain reached a volume of 37,644 units during the last month of March, which represents a drop of 69.3% in comparison with the 122,659 units delivered in the same month of the previous year, according to data from the associations of manufacturers (Anfac), dealers (Faconauto) and sellers (Ganvam).

The sharp drop in car sales experienced in March is explained by the spread of the coronavirus and the measures adopted by the Government, among which the limitation of population mobility stands out, which led to the closure of dealerships and the virtual paralysis of the automotive market.

The data also comes half a month into the lockdown (March 14), so most of the sales will have been concentrated in the first days of the month when the state of emergency had not yet been declared.

Unparalleled fall

Given these figures, Noemi Navas, Director of Communications at Anfac, stated that March's sales figures are "unparalleled" and indicated that Anfac believes a rapid return to pre-crisis levels is possible. "We will need a 'shock plan' to relaunch the sector, including specific measures for the automotive industry, to quickly recover the market and production," she emphasized.

For his part, Raúl Morales, the Communications Director of Faconauto, described the commercial figures recorded last month as a "historic debacle," and predicts, with dealerships closed, a "non-existent market or one with drops of close to 90%" for the next two months.

From Ganvam, the Communications Director, Tania Puche, explained that the halt in activity due to the coronavirus has meant that daily registrations during the state of emergency have plummeted to just 300 units. "Given that distribution networks operate with margins of less than 1% of turnover, this situation logically means writing off the year, with the resulting consequences for employment," she concluded.

To all this, we must add the number of temporary layoffs (ERTEs) within the automotive sector. After all manufacturers with production facilities in Spain filed their temporary layoff plans, the rest of the automotive sector—one of the hardest hit by the Covid-19 crisis—followed suit. So much so that Faconauto estimates the impact on dealerships will mean the temporary suspension of employment for 150,000 people.

Given these figures, Noemi Navas, Director of Communications at Anfac, stated that March's sales figures are "unparalleled" and indicated that Anfac believes a rapid return to pre-crisis levels is possible. "We will need a 'shock plan' to relaunch the sector, including specific measures for the automotive industry, to quickly recover the market and production," she emphasized.

For his part, Raúl Morales, the Communications Director of Faconauto, described the commercial figures recorded last month as a "historic debacle," and predicts, with dealerships closed, a "non-existent market or one with drops of close to 90%" for the next two months.


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